BlackRock’s iShares Bitcoin Trust (IBIT) has reached a remarkable milestone, reporting net inflows exceeding $872 million on Wednesday. This figure represents the highest daily inflow since the fund’s inception in January, surpassing the previous record from March. According to BTCMarkets expert Rachael Lucas, the surge in IBIT’s performance aligns with a global trend of decreasing interest rates by central banks and the anticipated shift towards a more crypto-friendly administration under Donald Trump.
What Factors Are Driving Bitcoin ETF Interest?
With the U.S. presidential elections on the horizon, spot Bitcoin ETFs are experiencing heightened interest. Lucas pointed out that these ETFs are increasingly viewed as a safeguard against economic unpredictability, suggesting potential market volatility as the elections draw near. Investors are particularly attentive to polling data and regulatory developments, while upcoming financial disclosures from major tech corporations are also under examination.
On the same day, cumulative net inflows into U.S. spot Bitcoin ETFs reached $24.18 billion, although trading volume dipped to $1.97 billion compared to the prior day. Notably, Bitwise’s BITB reported a rare net outflow of $23.89 million.
Can Spot Bitcoin ETFs Surpass Nakamoto’s Holdings?
Bloomberg Senior ETF Analyst Eric Balchunas remarked that the record inflows into BlackRock’s funds have propelled the total Bitcoin holdings within U.S. spot ETFs to nearly 1 million BTC. He projects that these ETFs could exceed Satoshi Nakamoto’s 1.1 million BTC by the end of November, positioning them as the largest Bitcoin holders.
Additionally, spot Ethereum ETFs recorded modest inflows, with FETH seeing $5.32 million and CETH $2.66 million, while Bitwise’s ETHW faced a net outflow of $3.63 million. The total trading volume for spot Ethereum ETFs remained stagnant at $220 million, missing expectations for robust demand.
- IBIT’s inflows highlight growing institutional interest in Bitcoin.
- Spot Bitcoin ETFs’ total holdings are nearing historical ownership levels.
- Market dynamics are heavily influenced by upcoming elections and interest rates.
Currently trading around $72,300, Bitcoin is close to its all-time high of $73,500. Analysts, including Presto Research’s Min Jung, suggest that breaking through the resistance at $73,800 could initiate a new market rally, pointing to an optimistic outlook for Bitcoin’s price trajectory.